Prove That Under the Extended Least Squares Assumptions the OLS

question 10

Essay

Prove that under the extended least squares assumptions the OLS estimator is unbiased and that its variance-covariance matrix is (X'X)-1.

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Definitions:

Static Planning Budget

A budget based on a fixed level of activity, not adjusted for actual activity levels.

Customers Served

The number of individual customers or clients that a business has provided goods or services to during a specific period.

Total Expenses

Represents the sum of all costs and expenses incurred by a business in a specific period, including both operational and non-operational items.

Spending Variance

The difference between the amount budgeted for spending and the actual amount spent, which can indicate over or underperformance against the budget.